Financial Performance - Total revenue increased 45% to $48.3 million for the three months ended April 30, 2021, compared to $33.4 million for the same period in 2020[124] - Net loss was $11.0 million for the three months ended April 30, 2021, compared to a net loss of $6.1 million for the same period in 2020[124] - Adjusted EBITDA was positive $0.1 million for the three months ended April 30, 2021, compared to positive $1.5 million for the same period in 2020[124] - Adjusted EBITDA decreased to $69,000 for the three months ended April 30, 2021, compared to $1.5 million in 2020, reflecting a decline in core operating performance[164] Cash Flow - Cash used in operating activities was $5.5 million for the three months ended April 30, 2021, compared to cash provided by operating activities of $1.9 million for the same period in 2020[124] - Free cash flow was negative $12.4 million for the three months ended April 30, 2021, compared to negative $1.2 million for the same period in 2020[124] - The company had a net increase in cash and cash equivalents of $231.9 million for the three months ended April 30, 2021, compared to a decrease of $63,000 in the same period of 2020[176] - As of April 30, 2021, the company had cash and cash equivalents of $450.7 million, up from $218.8 million as of January 31, 2021, following a follow-on offering that raised net proceeds of $245.8 million[168] - Cash used in investing activities during the three months ended April 30, 2021, was $6.9 million, primarily due to $4.0 million in property and equipment purchases and $2.9 million in capitalized internal-use software costs[179] - Net cash provided by financing activities for the three months ended April 30, 2021, was $244.3 million, driven by $245.8 million from a common stock offering[181] Revenue Breakdown - Average revenue per provider client increased to $20,222 for the three months ended April 30, 2021, from $16,735 for the same period in 2020[130] - Patient payment volume increased to $701 million for the three months ended April 30, 2021, compared to $454 million for the same period in 2020[132] - Subscription and related services revenue increased by $6.2 million to $21.8 million for the three months ended April 30, 2021, compared to $15.6 million for the same period in 2020[144] - Life sciences revenue increased by 61% to $9.8 million for the three months ended April 30, 2021, compared to $6.1 million for the same period in 2020[144] - Revenue from patient payments processed through the Phreesia Platform increased by $4.9 million to $16.6 million for the three months ended April 30, 2021, compared to $11.7 million in 2020, attributed to new and expanded provider clients[147] Expenses - Cash used in operating activities was $5.5 million for the three months ended April 30, 2021, compared to cash provided of $1.9 million in the same period of 2020[178] - Cost of revenue (excluding depreciation and amortization) increased by $3.8 million to $8.5 million for the three months ended April 30, 2021, representing an 80% increase compared to $4.7 million for the same period in 2020, driven by higher headcount and data center expansion costs[145] - Payment processing expense rose by $2.9 million to $9.7 million for the three months ended April 30, 2021, a 42% increase from $6.8 million in the prior year, primarily due to increased patient payments processed through the Phreesia Platform[147] - Sales and marketing expense increased by $5.6 million to $15.0 million for the three months ended April 30, 2021, a 59% increase from $9.4 million in 2020, mainly due to a rise in total compensation costs[148] - Research and development expense increased by $3.0 million to $8.1 million for the three months ended April 30, 2021, reflecting a 61% increase from $5.0 million in 2020, driven by higher compensation costs and outside services[150] - General and administrative expense rose by $4.0 million to $12.7 million for the three months ended April 30, 2021, a 45% increase from $8.7 million in 2020, primarily due to increased compensation costs and software expenses[152] - Depreciation expense increased by $1.0 million to $3.3 million for the three months ended April 30, 2021, a 45% increase from $2.3 million in 2020, mainly due to higher data center equipment depreciation[154] Financial Obligations - Total contractual obligations as of April 30, 2021, amounted to $13.6 million, with $4.98 million due within one year[184] - The company’s principal commitments include finance lease and operating lease obligations, as well as debt obligations and interest on debt[183] - The company’s finance lease obligations decreased by $0.8 million during the three months ended April 30, 2021[183] - As of April 30, 2021, the company was in compliance with all covenants related to the Second SVB Facility[175] - The Second SVB Facility has an interest rate of 4.5% as of April 30, 2021, with potential reductions based on Adjusted EBITDA levels[175] Currency and Foreign Transactions - The company had no foreign currency forward contracts outstanding as of April 30, 2021, and foreign currency transaction gains and losses have not been material[191]

Phreesia, Inc. (NYSE:PHR) Q4 2021 Results Earnings Conference Call March 31, 2021 8:30 AM ET Company Participants Balaji Gandhi - Vice President of Investor Relations Chaim Indig - Chief Executive Officer, Co-Founder Michael Davidoff - Senior Vice President of Marketing and Business Development Tom Altier - Chief Financial Officer Conference Call Participants Jared Haase - William Blair Stephanie Davis - SVB Leerink Scott Schoenhaus - Stephens Sean Wieland - Piper Sandler Hannah Baade - D.A. Davidson Ryan M ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) Phreesia provides a SaaS platform for patient intake, payments, and life sciences communication, processing nearly **$2.0 billion** in fiscal 2021 [Overview](index=7&type=section&id=Item%201.%20Business-Overview) Phreesia's SaaS platform streamlines patient intake and payments for healthcare providers, processing nearly **$2.0 billion** in fiscal 2021 - Phreesia's core business is a SaaS-based platform for healthcare provider organizations, focusing on patient intake management and integrated payment processing[26](index=26&type=chunk) - In fiscal **2021**, the company served over **1,800** healthcare provider clients and processed nearly **$2.0 billion** in patient payments[26](index=26&type=chunk) - The platform also serves as an engagement channel for life sciences companies, including **13** of the top **20** global pharmaceutical firms, to communicate directly with patients[26](index=26&type=chunk)[29](index=29&type=chunk) [Our Platform](index=7&type=section&id=Item%201.%20Business-Our%20Platform) The Phreesia Platform offers comprehensive solutions for patient registration, revenue cycle, and appointments, including COVID-19 specific tools - The platform's solutions include: Registration, Revenue Cycle, Appointments, Patient Activation, Clinical Support, and Life Sciences[30](index=30&type=chunk) - Phreesia developed specific COVID-19 product offerings to manage vaccine delivery, screen for risk factors, and enable contactless and telehealth intake[30](index=30&type=chunk)[31](index=31&type=chunk) [Industry challenges and our opportunity](index=8&type=section&id=Item%201.%20Business-Industry%20challenges%20and%20our%20opportunity) Phreesia addresses healthcare challenges like administrative inefficiencies, rising patient financial responsibility, and the demand for better patient experiences - Addresses administrative inefficiencies and waste in healthcare by automating the manual and error-prone patient intake process[34](index=34&type=chunk)[35](index=35&type=chunk) - Capitalizes on the trend of increasing patient financial responsibility by providing a digital payments platform to improve collections[36](index=36&type=chunk)[37](index=37&type=chunk) - Meets the demands of healthcare consumerism by improving patient experience, satisfaction, and convenience[38](index=38&type=chunk)[39](index=39&type=chunk) - Supports the shift to value-based care by providing tools to collect patient-reported outcomes (PROs) and streamline workflows[41](index=41&type=chunk)[42](index=42&type=chunk) [Our market opportunity](index=9&type=section&id=Item%201.%20Business-Our%20market%20opportunity) Phreesia estimates its total addressable market at approximately **$9.0 billion**, encompassing provider subscriptions, patient payments, and life sciences marketing - The company estimates its total addressable market at approximately **$9.0 billion**[45](index=45&type=chunk) - The market opportunity is derived from three main sources: (1) subscription fees from approximately **1.3 million** U.S. providers, (2) payment processing fees from a **$91 billion** out-of-pocket patient spend market, and (3) a share of the **$6 billion** life sciences direct-to-consumer marketing spend[45](index=45&type=chunk) [Our growth strategies](index=12&type=section&id=Item%201.%20Business-Our%20growth%20strategies) Phreesia's growth strategy centers on client expansion, cross-selling, product innovation, strategic acquisitions, and margin enhancement through operating leverage - Expand the client base by targeting the large and underserved U.S. ambulatory and acute care market[65](index=65&type=chunk) - Deepen relationships with existing provider clients by selling additional applications and adding more providers to the platform[66](index=66&type=chunk) - Continuously innovate and invest in new offerings, such as appointments and patient activation applications, to drive incremental revenue[67](index=67&type=chunk) - Pursue strategic investments, partnerships, and acquisitions, such as the recent acquisitions of Vital Score and QueueDr, to accelerate growth[68](index=68&type=chunk) - Enhance margins by gaining operating leverage as the company adds larger clients and expands existing ones with minimal incremental platform investment[69](index=69&type=chunk) [Healthcare laws and regulations](index=19&type=section&id=Item%201.%20Business-Healthcare%20laws%20and%20regulations) The company operates under complex healthcare laws including HIPAA, TCPA, and fraud and abuse statutes, with evolving regulations like the 21st Century Cures Act - Phreesia is a "business associate" under HIPAA and is directly subject to its privacy, security, and breach notification rules, with potential for significant civil and criminal penalties for violations[92](index=92&type=chunk)[93](index=93&type=chunk) - The company is subject to numerous state privacy laws, such as the California Consumer Privacy Act (CCPA) and the upcoming California Privacy Rights Act (CPRA), which may be more restrictive than HIPAA[96](index=96&type=chunk) - Operations are subject to federal and state fraud and abuse laws, including the Anti-Kickback Statute, which prohibits remuneration for referrals, and the Stark Law, which governs physician self-referrals[103](index=103&type=chunk)[104](index=104&type=chunk) - New HHS rules under the **21st** Century Cures Act regarding interoperability and "information blocking" create new requirements and may alter the competitive landscape by mandating easier data access and exchange[109](index=109&type=chunk)[110](index=110&type=chunk) [Human Capital Resources](index=23&type=section&id=Item%201.%20Business-Human%20Capital%20Resources) Phreesia had **827** full-time employees as of January 31, 2021, fostering a strong culture, diversity, and a fully remote work environment - As of January **31**, **2021**, the company had **827** full-time employees, with **320** in services/support, **254** in sales/marketing, **157** in R&D, and **96** in general/administrative roles[114](index=114&type=chunk) - The company has transitioned to a fully remote workforce in response to the COVID-19 pandemic to provide flexibility and access the best talent[118](index=118&type=chunk) - Phreesia is committed to diversity and inclusion, supported by Employee Resource Groups (ERGs) and was added to the Bloomberg Gender Equality Index in January **2021**[116](index=116&type=chunk)[117](index=117&type=chunk) [Risk Factors](index=25&type=page&id=Item%201A.%20Risk%20Factors) The company faces multiple risks, including business disruptions, internal control weaknesses, intense competition, payment platform vulnerabilities, and complex data privacy and healthcare regulations [Risks relating to our business](index=25&type=section&id=Item%201A.%20Risk%20Factors-Risks%20relating%20to%20our%20business) The company's business faces operational risks from economic disruptions, rapid growth, net losses, material weakness in internal controls, intense competition, and reliance on key personnel - The COVID-19 pandemic has harmed and may continue to harm the business by decreasing healthcare spending, disrupting client operations, and affecting sales and collections[125](index=125&type=chunk)[126](index=126&type=chunk) - A material weakness in internal control over financial reporting was identified for fiscal years **2020** and **2021**, specifically related to user access and program change management for IT systems, which could result in material misstatements of financial statements[132](index=132&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) - The company has a history of net losses, reporting a net loss of **$27.3 million** in fiscal **2021** and **$20.3 million** in fiscal **2020**, and may not achieve profitability in the future[139](index=139&type=chunk) - The business faces intense competition from a fragmented market, including potential competition from its own EHR and PM integration partners[147](index=147&type=chunk)[149](index=149&type=chunk) - Success depends on retaining the senior management team, including founders Chaim Indig (CEO) and Evan Roberts (COO), and attracting and retaining highly skilled employees in a competitive market[161](index=161&type=chunk)[162](index=162&type=chunk) [Risks relating to our payments business](index=34&type=section&id=Item%201A.%20Risk%20Factors-Risks%20relating%20to%20our%20payments%20business) The payments platform, a core revenue driver, faces risks from degradation, technology changes, increased card network fees, non-compliance with network rules, and regulatory shifts - The payments platform is a core element of the business, generating **34%** of total revenue in fiscal **2021**, and any degradation or failure to grow this platform could materially harm the business[175](index=175&type=chunk) - Increases in interchange fees from card networks like Visa and MasterCard could reduce earnings if the company cannot pass these costs on to clients due to competitive pressure[177](index=177&type=chunk) - Failure to comply with card network operating rules could result in fines, suspension, or termination of the company's status as a payment facilitator, which would adversely affect the ability to conduct business[178](index=178&type=chunk)[179](index=179&type=chunk) [Risk related to our data and intellectual property](index=35&type=section&id=Item%201A.%20Risk%20Factors-Risk%20related%20to%20our%20data%20and%20intellectual%20property) The company faces significant data and intellectual property risks, including security breaches, non-compliance with privacy laws, inadequate IP protection, and open-source software liabilities - The company collects, processes, and stores significant amounts of sensitive data, including personally identifiable information and protected health information, making it vulnerable to security breaches which could result in economic loss and legal penalties[182](index=182&type=chunk) - As a "Business Associate" under HIPAA, the company is directly liable for compliance and subject to civil and criminal penalties, and is also subject to other stringent laws like the California Consumer Privacy Act (CCPA)[186](index=186&type=chunk)[190](index=190&type=chunk) - The company's intellectual property may not be adequately protected, and it could face costly litigation from third parties alleging infringement of their IP rights[195](index=195&type=chunk)[205](index=205&type=chunk) - Use of open-source software could expose the company to claims and potentially require disclosure of proprietary source code[199](index=199&type=chunk) - Failures or errors in the software could lead to liability claims from clients, providers, or patients if it provides inaccurate or untimely information[210](index=210&type=chunk)[211](index=211&type=chunk) [Risks related to regulation](index=41&type=section&id=Item%201A.%20Risk%20Factors-Risks%20related%20to%20regulation) Phreesia operates within an uncertain healthcare regulatory framework, facing risks from evolving laws, fraud and abuse statutes, potential FDA medical device classification, and TCPA claims - The healthcare regulatory and political framework is uncertain, with potential changes to the ACA and new rules under the **21st** Century Cures Act regarding interoperability and "information blocking" that could significantly impact the business[215](index=215&type=chunk)[216](index=216&type=chunk) - Failure to comply with federal and state anti-kickback and false claims laws could subject the company to civil and criminal penalties, exclusion from government healthcare programs, and contract invalidations[221](index=221&type=chunk)[222](index=222&type=chunk) - The FDA may in the future determine that the company's technology solutions are medical devices subject to regulation, which would impose additional costs and risks[229](index=229&type=chunk) - Text messaging services are subject to the Telephone Consumer Protection Act (TCPA), and non-compliance could lead to civil penalties and other adverse effects[231](index=231&type=chunk) [Unresolved Staff Comments](index=51&type=page&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[276](index=276&type=chunk) [Properties](index=51&type=section&id=Item%202.%20Properties) The company leases office space in Raleigh, North Carolina, and Kanata, Ontario - Leases **16,120** sq. ft. of office space in Raleigh, NC, with the lease expiring in **2023**[277](index=277&type=chunk) - Leases **19,074** sq. ft. of office space in Kanata, Ontario, with the lease expiring in **2021**[277](index=277&type=chunk) [Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business - The company is not presently a party to any legal proceedings that would have a material adverse effect on its business[278](index=278&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[279](index=279&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Phreesia's common stock trades on the NYSE under "PHR" since its 2019 IPO, with the company retaining earnings for growth and no plans for future dividends - Common stock began trading on the NYSE under the symbol "PHR" on July **18**, **2019**[281](index=281&type=chunk) - The company has never declared or paid cash dividends and does not anticipate doing so in the foreseeable future, retaining funds for business operations[287](index=287&type=chunk) - Net proceeds from the July **2019** IPO were approximately **$130.8 million**, which were used as described in the prospectus[294](index=294&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2021, Phreesia's total revenue grew **19%** to **$148.7 million**, with a net loss of **$27.3 million** due to increased operating expenses, maintaining strong liquidity [Financial Highlights](index=55&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Financial%20Highlights) Fiscal 2021 highlights include **19%** revenue growth to **$148.7 million**, a net loss of **$27.3 million**, and positive Adjusted EBITDA of **$3.8 million** Fiscal 2021 Financial Highlights | Metric | Fiscal 2021 | Fiscal 2020 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $148.7 million | $124.8 million | +19% | | Net Loss | $27.3 million | $20.3 million | +34.5% | | Adjusted EBITDA | $3.8 million | $4.8 million | -20.8% | | Cash provided by operating activities | $2.9 million | $0.8 million | +262.5% | | Free Cash Flow | ($15.7 million) | ($11.5 million) | -36.5% | [Key Metrics](index=57&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Key%20Metrics) Fiscal 2021 key metrics show **9%** growth in provider clients to **1,711**, **6%** increase in average revenue per client, and **7%** rise in patient payment volume to nearly **$2.0 billion** Key Operational Metrics (Fiscal Year-End) | Key Metric | FY 2021 | FY 2020 | % Change | | :--- | :--- | :--- | :--- | | Provider clients (average) | 1,711 | 1,571 | 9% | | Average revenue per provider client | $69,499 | $65,486 | 6% | Patient Payment Volume (Fiscal Year-End) | Metric | FY 2021 | FY 2020 | % Change | | :--- | :--- | :--- | :--- | | Patient payment volume | $1.997 billion | $1.865 billion | 7% | | Payment facilitator volume percentage | 81% | 82% | -1% | [Results of operations](index=59&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Results%20of%20operations) Fiscal 2021 total revenue grew **19%** to **$148.7 million**, driven by subscription and life sciences revenue, though operating and net losses widened due to increased expenses Revenue by Source (Fiscal Year Ended Jan 31) | Revenue Source | 2021 (Thousands) | 2020 (Thousands) | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscription and related services | $69,042 | $56,357 | $12,685 | 23% | | Payment processing fees | $49,900 | $46,500 | $3,400 | 7% | | Life sciences | $29,735 | $21,927 | $7,808 | 36% | | **Total revenue** | **$148,677** | **$124,784** | **$23,893** | **19%** | Operating Expenses (Fiscal Year Ended Jan 31) | Expense Category | 2021 (Thousands) | 2020 (Thousands) | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Cost of revenue (excl. D&A) | $23,461 | $16,831 | $6,630 | 39% | | Payment processing expense | $28,925 | $27,889 | $1,036 | 4% | | Sales and marketing | $42,972 | $32,357 | $10,615 | 33% | | Research and development | $22,622 | $18,623 | $3,999 | 21% | | General and administrative | $40,460 | $30,458 | $10,002 | 33% | | Depreciation & Amortization | $15,908 | $13,924 | $1,984 | 14% | | **Total expenses** | **$174,348** | **$140,082** | **$34,266** | **24%** | - The increase in Sales and Marketing expense was primarily due to a **$9.9 million** increase in compensation costs from higher headcount[333](index=333&type=chunk) - The increase in General and Administrative expense was driven by a **$9.4 million** rise in compensation costs to support growth as a public company[337](index=337&type=chunk) [Liquidity and capital resources](index=65&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Liquidity%20and%20capital%20resources) As of January 31, 2021, Phreesia's cash and cash equivalents increased to **$218.8 million**, bolstered by a **$174.8 million** follow-on equity offering, ensuring sufficient liquidity - Cash and cash equivalents increased to **$218.8 million** as of Jan **31**, **2021**, from **$90.3 million** as of Jan **31**, **2020**[353](index=353&type=chunk) - Completed a follow-on offering in October **2020**, raising net proceeds of **$174.8 million**[352](index=352&type=chunk) - Entered into a new revolving credit facility with Silicon Valley Bank for up to **$50.0 million** in May **2020**[357](index=357&type=chunk) - As of January **31**, **2021**, there was no outstanding balance on the facility[358](index=358&type=chunk) Summary of Cash Flows (in thousands) | Cash Flow Activity | Fiscal Year 2021 | Fiscal Year 2020 | | :--- | :--- | :--- | | Cash provided by operating activities | $2,890 | $826 | | Cash used in investing activities | ($25,085) | ($12,320) | | Cash provided by financing activities | $150,661 | $100,266 | | **Net increase in cash** | **$128,466** | **$88,772** | [Quantitative and Qualitative Disclosures about Market Risk](index=72&type=page&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are minimal interest rate exposure and foreign currency risk from Canadian dollar expenses, mitigated by forward contracts - The company is exposed to interest rate risk, but does not believe a **100**-basis-point change would have a material effect due to the short-term nature of its cash equivalents[399](index=399&type=chunk) - Foreign currency risk exists due to expenses denominated in Canadian dollars[400](index=400&type=chunk) - The company uses foreign currency forward contracts to mitigate this risk, though transaction gains and losses have not been material[400](index=400&type=chunk) [Financial Statements and Supplementary Data](index=73&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements, including an unqualified auditor's opinion on financials but an adverse opinion on internal controls due to a material weakness [Report of Independent Registered Public Accounting Firm](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG issued an unqualified opinion on the financial statements but an adverse opinion on internal controls due to a material weakness in IT controls, highlighting two critical audit matters - The auditor issued an unqualified opinion on the consolidated financial statements[406](index=406&type=chunk) - An adverse opinion was issued on the effectiveness of internal control over financial reporting due to a material weakness[421](index=421&type=chunk) - The material weakness related to ineffective IT controls over user access and program change management, creating a reasonable possibility of a material misstatement not being prevented or detected[423](index=423&type=chunk) - Critical Audit Matters included: **1)** Judging the identification of distinct performance obligations in complex, large enterprise contracts, and **2)** Evaluating the subjective assumptions (e.g., revenue growth, discount rates) used to determine the fair value of intangible assets from the QueueDr acquisition[414](index=414&type=chunk)[417](index=417&type=chunk) [Consolidated Financial Statements](index=79&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of **$326.7 million**, total revenue of **$148.7 million**, a net loss of **$27.3 million**, and a year-end cash balance of **$218.8 million** Consolidated Balance Sheet Highlights (as of Jan 31, 2021, in thousands) | Account | Amount | | :--- | :--- | | Cash and cash equivalents | $218,781 | | Total Assets | $326,666 | | Total Liabilities | $63,360 | | Total Stockholders' Equity | $263,306 | Consolidated Statement of Operations Highlights (for year ended Jan 31, 2021, in thousands) | Account | Amount | | :--- | :--- | | Total revenue | $148,677 | | Operating loss | ($25,671) | | Net loss | ($27,292) | | Net loss per share | ($0.69) | [Notes to Consolidated Financial Statements](index=86&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue recognition, acquisitions, debt, leases, equity compensation, and net loss per share, providing comprehensive financial context - On January **8**, **2021**, the company acquired QueueDr for total consideration of **$10.1 million**, including **$5.8 million** in cash and **$2.2 million** in contingent consideration[604](index=604&type=chunk)[605](index=605&type=chunk)[606](index=606&type=chunk) - The acquisition added **$8.1 million** to goodwill[606](index=606&type=chunk) - The company's equity compensation plans include stock options, RSUs, and market-based PSUs[562](index=562&type=chunk) - As of Jan **31**, **2021**, there was **$48.6 million** of unrecognized compensation cost for RSUs and **$5.9 million** for PSUs[567](index=567&type=chunk) - As of Jan **31**, **2021**, the company had federal net operating loss (NOL) carryforwards of approximately **$199.1 million**, which are subject to a valuation allowance of **$54.6 million**[389](index=389&type=chunk)[392](index=392&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=115&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles or financial disclosure - None[617](index=617&type=chunk) [Controls and Procedures](index=115&type=page&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to a material weakness in IT controls, with remediation underway and partial remediation of a prior accounting personnel weakness - Management concluded that disclosure controls and procedures were not effective as of January **31**, **2021**[617](index=617&type=chunk) - A material weakness was identified in internal control over financial reporting related to ineffective controls over user access and program change management for certain IT systems[623](index=623&type=chunk) - Remediation actions are underway, including hiring more IT staff, enhancing risk assessment and controls for user access and change management, and improving documentation[626](index=626&type=chunk) - A portion of the material weakness identified in fiscal **2020** related to insufficient accounting personnel was concluded to be remediated as of January **31**, **2021**[627](index=627&type=chunk)[628](index=628&type=chunk) [Other Information](index=117&type=page&id=Item%209B.%20Other%20Information) On March 26, 2021, the Board adopted amended by-laws to make the content gender-neutral and change the title of Chairman to Chair - On March **26**, **2021**, the company's Board of Directors adopted amended and restated by-laws to make the content gender neutral and change the title of Chairman to Chair[630](index=630&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=118&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement - Information is incorporated by reference from the proxy statement for the **2021** Annual Meeting of Stockholders[633](index=633&type=chunk) [Executive Compensation](index=118&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement - Information is incorporated by reference from the proxy statement for the **2021** Annual Meeting of Stockholders[634](index=634&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=118&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and related stockholder matters is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement - Information is incorporated by reference from the proxy statement for the **2021** Annual Meeting of Stockholders[635](index=635&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=118&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement - Information is incorporated by reference from the proxy statement for the **2021** Annual Meeting of Stockholders[636](index=636&type=chunk) [Principal Accountant Fees and Services](index=118&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement - Information is incorporated by reference from the proxy statement for the **2021** Annual Meeting of Stockholders[637](index=637&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=119&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including consolidated financial statements, omitted schedules, and an index of various agreements and certifications - This section lists all exhibits filed with the Annual Report on Form **10-K**, including governance documents, material contracts, and SEC-required certifications[640](index=640&type=chunk)[641](index=641&type=chunk) [Form 10-K Summary](index=121&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company's filing - Not applicable[645](index=645&type=chunk)

Table of Contents OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38977 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2020 PHREESIA, INC. (Exact name of registrant as specified in its charter) Delaware 20-2275479 (State or other jurisd ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $38.5 million, representing a 17% year-over-year increase [11][26] - Average number of provider clients increased to 1,737, up 10% year-over-year [11] - Average revenue per provider client rose to $17,490, a 5% year-over-year increase [11] - Adjusted EBITDA was $1.2 million, down approximately $1.8 million year-over-year due to continued investments in long-term growth [11][34] - Cash on the balance sheet was $254.1 million, up $169.9 million from July 31 [35] Business Line Data and Key Metrics Changes - Subscription and related services revenue was $17.5 million, up 20% year-over-year [26] - Payment processing fee revenue reached $12.9 million, a 12% year-over-year increase [27] - Life Sciences revenue was $8.1 million, up 21% year-over-year, reflecting strong execution and demand [11][29] Market Data and Key Metrics Changes - Patient visit trends recovered to pre-pandemic levels during September and were sustained through the end of the quarter [27] - The company noted that the sales team focused on getting solutions to providers and patients who needed them during the pandemic [43] Company Strategy and Development Direction - The company is focused on long-term growth and has prioritized investments in R&D, expecting to accelerate spending in the coming quarters [31][37] - A leadership transition is planned with the current CFO retiring and a new CFO set to take over in May 2021 [14][15] - The company is committed to enhancing its environmental, social, and governance (ESG) initiatives, particularly in gender equality [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth drivers and the ability to meet growth objectives despite uncertainties related to COVID-19 [42] - The company expects revenue for the full fiscal year 2021 to be between $146 million and $147 million, with growth projected at 20% to 25% for fiscal year 2022 [37] Other Important Information - The company has transitioned to a fully remote operation and allowed its New York City office lease to expire [18][19] - The company is actively recruiting and expanding its sales and implementation teams to capture market opportunities [63] Q&A Session Summary Question: How will the quantified market opportunity contribute to growth? - Management indicated that it is a multiyear driver of growth, providing comfort in guidance moving forward [42] Question: What is the reason for the lower revenue per provider client despite strong client growth? - Management attributed this to a focus on getting solutions to providers and patients during the pandemic [43] Question: Can you highlight areas of increased R&D spending? - Management stated that they will continuously communicate where they are investing and will only do so after having clients using those products [47] Question: What are the underlying assumptions for the 20% to 25% guidance for fiscal year 2022? - Management emphasized that the guidance is based on current knowledge and not a prediction of future COVID impacts [54] Question: Can you provide details on the retirement of the CFO? - The current CFO will remain as an advisor after retirement, ensuring a smooth transition [56] Question: What is the current state of the sales force? - The sales organization has approximately 40 salespeople and around 100 SDRs, with a focus on ramping back up post-pandemic [131] Question: Are there any pricing pressures from competing solutions? - Management noted that while competition exists, they have not seen significant downward pressure on pricing [138]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38977 PHREESIA, INC. (Exact name of registrant as specified in its charter) Delaware 20-2275479 (State or other jurisdict ...

Phreesia, Inc. (NYSE:PHR) Q2 2021 Earnings Conference Call September 9, 2020 8:30 AM ET Company Participants Balaji Gandhi - VP, IR Chaim Indig - CEO Thomas Altier - CFO Conference Call Participants Anne Samuel - JPMorgan Ryan Daniels - William Blair Stephanie Davis - SVB Leerink John Ransom - Raymond James Donald Hooker - KeyBanc Sean Wieland - Piper Sandler Glen Santangelo - Guggenheim Securities Daniel Grosslight - Citi Sean Dodge - RBC Capital Markets David Larsen - Verity Research Operator Good morning ...

Investor Presentation September 2020 DISCLAIMERS AND FORWARD-LOOKING STATEMENTS Statements we make in this presentation may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "seeks," "should," "will," "could," "appears," "shal ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38977 PHREESIA, INC. (Exact name of registrant as specified in its charter) Delaware 20-2275479 (State or other jurisdic ...

Phreesia, Inc. (NYSE:PHR) Q1 2021 Earnings Conference Call June 9, 2020 8:30 AM ET Company Participants Balaji Gandhi - VP, IR Chaim Indig - CEO Thomas Altier - CFO Conference Call Participants Anne Samuel - J.P. Morgan Unidentified Analyst - William Blair & Company Stephanie Davis Demko - SVB Leerink LLC Sean Wieland - Piper Sandler Companies Matthew Gillmor - Robert W. Baird & Co. John Ransom - Raymond James Donald Hooker - KeyBanc Capital Markets Inc. Glen Santangelo - Guggenheim Securities Jamie Stockto ...